Necessity – The Mother Of Invention

Will The Bear Market Defeat You?

A lot of new investors underestimate the mental and emotional strength required to take part in financial markets. When optimism and valuation begin to diminish, many investors choose the path being suggested to them, rather than choosing to forge their way forward. A strong conviction, together with a stubborn determination to match are two very necessary ingredients to any form of success.

Success is guarded by many challenges, difficulties, and hardships. Remember, once we re-enter a bull market, we will once again be labeled “lucky” by the no-coiners. Well, if it’s luck, why not hang around and get lucky? The truth is that the mental and emotional anguish is too much for these individuals. It’s easier to walk away. It’s also easier to label others as lucky rather than to acknowledge their determination and perseverance.

However, determination requires a plan of action and daily discipline. Surviving a bear market means different things for different people. For some, there is more “on the line” than for others. How you choose to navigate your way forward depends on you and your financial position. Being in a situation that demands a solution can sometimes be an incredible motivation. It has the potential to push you towards extending your borders, and even trying new strategies.

Motivation & Perspective

Motivation matters! Given the right motivation, many individuals will push beyond their comfort zones and begin experiencing growth in multiple areas of their life. This is yet another benefit of a bear market. However, if you don’t have the right perspective, you will be unable to appreciate and appropriate the correct course of action. For newcomers, one of the best ways to gain a healthy perspective is to learn from those who have been here before.

When Bitcoin has been trading above $60K, a drop to $30K looks like a bargain, especially to a noob. Unfortunately, when it comes to a bear market, discounts no longer matter. A bear market is a time to retreat… to the hills. This is where disciplined traders and investors gain an eagle’s eye view and begin strategizing and analyzing. The correct motivation from a healthy perspective is essential when it comes to successfully navigating a bear market.

A bear market forces market participants to improve their game. It’s either that or become collateral damage. The lessons I learned in the previous bear market have been instrumental in developing my strategic approach for the current bear market. This will again be the case for the next bear market. Learning by doing is really the only way to become efficient in the financial world.

Final Thoughts

A bear market will challenge all of your ideologies, as well as suggest new ideas. Do you know why so many failed to sell at the top of this market and repeated the exact same mistakes they made in 2018? Quite simply, there was no strategic adjustment. They simply believe they were out of sync and missed the market. Well, if you have done it twice in a row, chances are you will do it again! New ideas and approaches create adjustment by default. They force you to do things differently.

Remember, if you want a different outcome, you are going to have to adjust your behavior. Allow this bear market to highlight your mistakes, and then make adjustments that directly hinder you from repeating them again. Bear markets can be equally as profitable as bull markets. In this game, movement is money! It doesn’t matter which way, there are tools to take advantage of either scenario. I ignore traders who only trade long, for the simple fact that they are biased.

Markets are moving up and down all the time. Permabulls live in a delusion.

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